The old saying goes, “Too many cooks spoils the broth.” What if they worked together? It might be that the broth is delicious after all. In business, teamwork is essential. All activities related to a business must be managed effectively. A multi-faceted enterprise, a business requires intensive planning, research and execution. The quality of management is a major factor in determining the strength and potential of an organization to generate impressive revenue. This, in turn has a large impact on its long-term brand value.
This may be something that many have heard before. Business management is more complex than most people think. To thrive in the world of finance and marketing, or to be an entrepreneur, you need real grit. Let’s take a deeper look at the inner workings and management of a business.
What is business management?
Business management is the simple coordination and administration tasks and resources of a business to reach a specific goal. This involves the supervision and training staff, overseeing core business operations, and designing infrastructure for future optimization.
Experts say that the key to successful business management is to strike a balance between managing talent and work. As a manager of a business, technical expertise will earn you respect from your colleagues. However, soft skills are needed to maintain that respect. To be a successful manager, you need to have a combination of communication skills, empathy and consistency. These attributes together make up an effective strategy for business management.
Business Administration and Management: What’s the difference?
Business management and business administration can seem interchangeable to even the most experienced professionals. Both a business administrator and a manager ensure that a company runs smoothly to meet fiscal targets and create value. There are some subtle differences in the job roles, which include different responsibilities and qualifications.
Business administration is involved in more technical aspects such as finances, operations, sales and marketing – the nuts and bolts of running a business. Business administrators specialize in specific fields to acquire the core skills needed for their sector.
Business management, on the other hand, focuses more on managing and organizing an organization’s assets, including its talent. It is a more people-centric approach that relies heavily upon soft skills. Business managers are leaders, innovators, excellent communicators and open to new ideas. They are also responsible for the productivity of their employees. They are adept at problem-solving and critical thinking. They establish the vision of the company and do their best to help it reach and exceed expectations.
Four skills that successful business managers must have
It is not easy to run a successful business. What is perhaps more difficult is to manage people. This is the primary responsibility of a business manager. Not only must they ace basic skills, such as communication, critical thinking, and strategizing, but they should also possess something extra that sets them apart – a certain je ne sais quoi. Here’s what we think that is.
As Harper Lee famously put it, “You never really understand a person until you consider things from their point of view.” Business management is not simply about assembling and motivating a team; it requires you to get the best out of them. In this regard, it’s crucial to remember that each member differs in their educational and professional backgrounds, work ethic, communication styles, motivation, and innate personality. Without empathy, business managers may find it impossible to truly understand their employees and implement a successful managerial approach.
One of the most important duties of a business manager is to hold employees accountable for their mistakes and help them improve. Not only does this ensure the performance of the entire organization but is also proof that you care about the growth of your staff enough for them to develop their competence. Being consistent and taking feedback are helpful ways to lessen the discomfort that may accompany difficult conversations or situations regarding accountability.
3. Negotiation and Conflict Resolution
According to IMD Business School professor George Kohlrieser, “Conflicts are the lifeblood of high-performing organizations.” At some point in time, a team of intelligent workers is bound to face creative differences, be it in strategy or implementation. The job of a manager is to resolve such conflicts and facilitate collaboration, exchange, and networking, all with a sense of goodwill and respect for the shared goal. Establishing a managerial style goes a long way in such negotiations and is a step towards mutually beneficial decisions. Consider taking an online course to improve your negotiation skills.
4. Executive Presence
Often viewed as an innate, mystical trait, in reality, executive presence is a highly-prized skill that can be cultivated with diligent practice. Referring to one’s ability to inspire confidence, executive presence is critical across hierarchies and highlights one’s potential for achievement. For business managers, it is imperative as it cements one’s authority and thus commands respect, and also imbues the team with a strong sense of self-esteem. Attributes like eloquence, calm-headedness, and a keen perception are central to building an impeccable executive presence.
Responsibilities of a Business Manager
By now, it is clear that business management constitutes a variety of roles and skills that work together to ensure operational consistency. In view of this, the responsibilities of a business manager can be outlined as follows:
1. Establishing Expectations and Goals
Setting clear objectives is the first step. In addition, it is also important to convey the same to employees in a persuasive manner, one that will motivate them to go the extra mile and ensure excellence.
2. Organizing and Delegating Work
Having evaluated the tasks at hand, an efficient manager breaks them down into actionable chunks and delegates work to the respective departments or employees. Their job is to ensure cohesion among all departments of an organization and that tasks are carried out according to timelines. Competent management can help optimize businesses, reduce costs and time, and enhance the overall productivity of the company.
3. Motivating, Training, and Supervising Staff
Assembling and leading a team towards a common goal requires business managers to interact with various kinds of individuals and train them. They must also be competent supervisors and offer constructive criticism as needed. In addition, managers track their team’s performance over time; this helps them identify each member’s strengths and weaknesses and take measures towards future accomplishments.
Career Outlook for Business Management
Business management is one of the high-paying jobs in the world. In India, the average annual salary for management roles is estimated to be INR 11,70,000. The salary of an employee in a managerial position can go as high as INR 27,00,000 per annum. By 2026, the management positions in India will grow at an estimated CAGR of 14.3%. Such high growth rates are driven by the constant emergence of new businesses and the expansion of ones that are already established.